Letter # 70

We present two stories to convey how we often fall for Resulting; i.e., just because the ‘results’ were good, we create a narrative that it is because our ‘decisions’ were good.

As investors too, we often fall for Resulting. Sectors perform in cycles, but we create a narrative that our insights led to superior returns. Sadly, the narrative does not hold in the long run, and the portfolio suffers.

In the chart, while we are referring to the Capital Goods sector between 2000 to 2007, can you guess which sector we are referring to between 2016 to 2019?

Read here: investment ideas: Keep following the sectoral cycles to maintain portfolio health – The Economic Times (indiatimes.com)

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies are provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.